June 10, 2019
New York partner Scott Semer spoke with Tax Notes on the proposed regulations by the U.S. Treasury and IRS and their application to qualified foreign pension funds (QFPFs), saying they “should answer most real-world questions.”
The regulations clarify the entities and organization structures that are eligible for the foreign pension fund exemption under section 987 (I), as well as the procedures they should take in certifying their status to withholding agents.
Scott told Tax Notes the clarification to the definition of a QFPF “should answer the most real-world questions without creating any unnecessary traps for the unwary.
He said they are consistent with the legislative intent to encourage foreign pension fund investment in to the United States real estate market while limiting the possibility for abuse.
“They address tricky situations that were confounding advisers, such as multi-tiered and pooled investment structures,” he said.
“I would view the proposed regulations as a home run for Treasury.”
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